Rising exports to big markets spur Bangladesh apparel industry’s optimism

Bangladesh’s readymade garment sector has won orders from new buyers in the big Western markets this fiscal year that pushed its exports to the US to grow at a record pace of 46 percent in the last six months year on year.

Exports to the European Union countries grew 23.83 percent and to Canada 23.78 percent, according to an analysis of recent Export Promotion Bureau data by the garment exporters’ group BGMEA.

The addition of new buyers aside, orders for new value-added or expensive products also increased, said Shahidullah Azim, a vice-president of the organisation and the managing director of Classic Fashion Concept.

“Bangladesh will be able to maintain the growth if it can retain the new buyers and orders for the new products.”

A US-China trade war led the buyers shift to Bangladesh, according to him. “Besides this, Vietnam and India imposed coronavirus lockdowns in this period that led the buyers to look to Bangladesh. We must keep these orders if we want to advance further.”

“The customers are also looking for diversity. We got orders for many expensive products aside from shirts, trousers, polo shirts and sweaters.”

Bangladesh exported $4.23 billion apparels to the US in the July-December period of 2021, $12 billion to the EU and $602.8 million to Canada.

Exports to the unconventional markets grew by 24.26 percent. 

RMG exports grew 28 percent to $19.9 billion in the first half of the fiscal year as Bangladesh's overall exports scaled new heights in 2021 on the back of a lucrative holiday shopping season in the West, injecting fresh impetus into the economy as it shakes off a pandemic-driven slowdown.

More than $4.9 billion worth of goods were shipped in December, a monthly record, propelling the overall export earnings to $39.14 in 2021.

Readymade garments contributed to about $20 billion, or more than 80 percent, of the total exports in the July-December period, as the holiday season in the West continued smoothly for the most part, barring some disruptions towards the end due to fears of the spread of omicron, a highly infectious variant.

The pandemic caused the export market to stumble in 2020, with Bangladesh's export earnings totalling $33.6 billion. But exports increased by 16.46 percent in 2021.

The spread of omicron fuelled fears of a slump in demand recently, but the Western countries have not imposed harsh restrictions as the variant has been proved to be less severe.

The World Bank in a recent report said economic growth prospects improved in Bangladesh, supported by returning readymade garment demand from abroad.